N-1-(i)2026-2027 Revenue Application
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and IN THE MATTER OF an application by the Nova Scotia Independent Energy System Operator for an Order or Orders made pursuant to Section 29 of the Act for the review of its proposed expenditure and revenue requirements and the fees it pro...
AI summary The Nova Scotia Independent Energy System Operator has applied for an order under Section 29 of the Act to review its proposed expenditure, revenue requirements, and fees for the fiscal year April 1, 2026, to March 31, 2027. The proceeding was initiated on January 20, 2026.
2 A. Overview - 3 This is the second revenue requirement application (Application) of the Nova Scotia Independent - 4 Energy System Operator (IESO Nova Scotia), and is for the fiscal period beginning on April 1, - 5 2026 and ending March 3...
AI summary IESO Nova Scotia is submitting a revenue requirement application for the fiscal year 2026/2027, seeking approval for OM&A costs and transitional costs. The application is submitted under the More Access to Energy Act, and there is overlap with the ongoing approval process for the 2025/2026 application. IESO Nova Scotia also requests financial relief from NS Power through a fee, and proposes a permanent variance and recovery mechanism.
7 8 9 10 11 12 Once the variance is determined each year, the positive or negative variance amount will be reflected in the next Revenue Requirement and Fees application, and will be worked into the calculation of fees charged. For example...
AI summary The text discusses the mechanism for addressing revenue variances, where annual variances are reflected in subsequent Revenue Requirement and Fees applications, and any under-collected amounts are proposed for recovery in future fee calculations.
N-6IESO (NSEB) RIR 1 to 33 - Redacted
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NON-CONFIDENTIAL 21 permanent fee and cost recovery mechanism. Additionally, the Net Revenue Requirement 22 Variance and Deferral Mechanism proposed in the Application, which is an extension and 23 refinement of the Net OM&A Deferral and V...
AI summary The document discusses the Net Revenue Requirement Variance and Deferral Mechanism proposed by IESO Nova Scotia, emphasizing its role as a true-up mechanism to address revenue variances. It notes that the mechanism does not influence cost allocation to rate classes, which will be handled by a future permanent fee and cost recovery mechanism, to be submitted to the NSEB in Q1 2026/2027.
Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests 1 Request IR - 28 2 On pages 38 and 39 of its application, IESO Nova Scotia provides a "simplified calculat...
AI summary The Nova Scotia Energy Board (NSEB) has requested detailed information from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) regarding its proposed Net Revenue Requirement Deferral and Variance Mechanism, including administration manuals, interest costs, reporting requirements, and risk transfer to customers.
NON-CONFIDENTIAL Request IR - 30 2 (a) Please explain how the Monthly Assessment amount of $950,000 was determined (given 3 that even the recovery of that amount over 14 months is less than the proposed 2026/2027 4 revenue requirement) and...
AI summary The request asks how the Monthly Assessment amount of $950,000 was determined, noting that recovering it over 14 months is less than the proposed 2026/2027 revenue requirement. It also inquires about the impact of accumulating deferrals if IESO Nova Scotia does not establish a permanent fee and cost recovery mechanism by March 31, 2027.
N-11Evidence of Doane Grant Thornton
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- 4 Figure 1 Summary of findings, observations and conclusions # Report section Findings, observations, and conclusions with standard industry practice. However, we offer the following comments for consideration go forward: • Our recommend...
AI summary The report highlights the applicability of previous recommendations regarding the Net OM&A Variance Deferral Account. It notes that while deferring capital costs is common for utilities, it is not standard for Canadian ISOs. The report suggests the need for additional details on eligible capital costs and deferral thresholds.
6.3.2 Proposed Net Revenue Requirement Deferral and Variance Mechanism per the Application Per the Application, IESO Nova Scotia is requesting the continuation of the Net OM&A Deferral and Variance Account described above for 2026/2027 and...
AI summary IESO Nova Scotia proposes renaming the Net OM&A Deferral and Variance Account to the Net Revenue Requirement Deferral and Variance Mechanism for 2026/2027 and beyond. The change aims to enhance clarity and allow for future cost categories.
5 Figure 25 – Summary of intervenor submissions Party Position Summary of reasoning for position CA Opposes the request for temporary financial relief96 • The request is not supported by sufficient evidence (minimal financial detail and re...
AI summary The intervenors (CA, SBA, and IG) oppose the request for temporary financial relief. They argue that the proposed use of the Fuel Adjustment Mechanism (FAM) is inappropriate, lacks sufficient evidence, and shifts financial risks to customers. They also highlight inconsistencies with legislation, the lack of clarity in the proposal, and the existence of alternative financing options.
Regulatory advisory experience Since 2012, Angie has advised regulatory bodies across Canada. Some examples include: - Board of Commissioners of Public Utilities Newfoundland & Labrador – Financial consultant including: - − Review of GRA f...
AI summary Angie has extensive regulatory advisory experience since 2012, working with Canadian regulatory bodies on rate applications, carbon adjustor mechanisms, forensic audits, and utility business plans. Key clients include Newfoundland & Labrador, Alberta, Nova Scotia, and New Brunswick regulatory agencies.
100926Submission - IG
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Re: M12663 – IESO-NS - 2026-27 Revenue Requirement and Fees Application These submissions are filed on behalf of the Industrial Group in response to the IESO-NS's request for immediate relief for NSPI to remit $950,000 per month, exclusive...
AI summary The Industrial Group opposes the IESO-NS's request to use the Fuel Adjustment Mechanism (FAM) to recover a monthly assessment of $950,000, arguing that it is improper, shifts risks to ratepayers, and lacks support. They also suggest alternative approaches that align better with legislative intent.
pproved range is preserved in the recent amendments to the Public Utilities Act . [5](#page-1-6) Critically, in these limited circumstances they were credits to the FAM, not a cost to ratepayers. In addition, the existing cost of service m...
AI summary The FAM cannot be used for non-fuel bridge financing. Credits to the FAM, not ratepayer costs, are preserved in the Public Utilities Act amendments. The IESO-NS proposal to allocate operation and maintenance costs—rather than fuel costs—to ATL FAM customers violates cost-causation principles. Excluding non-FAM customers like Port Hawkesbury Paper is deemed arbitrary and inconsistent with rate-making principles.
I" and permit immediate FAM recording and recovery.[13](#page-3-10) That approach effectively seeks pre-approval without the evidentiary record typically required to test prudence. Although the IESO-NS notes that any overpayment by NSPI wo...
AI summary The proposal allows immediate FAM recovery without prudence review, exposing ratepayers to financial risks due to untested mechanisms and lack of oversight. The IESO-NS's approach lacks substance, with no spending controls or independent oversight, and risks arise from implementation timing.
100962NSEB (IESO NS) IR 1 to 33 - PDF
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Request IR-25: - On page 37 of its application, IESO Nova Scotia states: "IESO Nova Scotia's 2025/2026 revenue - requirement application (currently before the NSEB under M12412) requested approval of an - OM&A deferral and variance account...
AI summary IESO Nova Scotia requests continuation of the Net OM&A Deferral and Variance Account for 2026/2027 and in perpetuity to track revenue variances. The NSEB seeks clarification on the rationale for the account's perpetuity and the basis for consolidating operating, capital, and resource procurement costs into a single deferral account, given potential differences in rate class allocations.
Request IR-28: - On pages 38 and 39 of its application, IESO Nova Scotia provides a "simplified calculation for the Net Revenue Requirement Deferral and Variance Mechanism": - a) Will IESO Nova Scotia be preparing an administration manual...
AI summary The document contains two regulatory requests (IR-28 and IR-29) directed at IESO Nova Scotia. IR-28 asks for clarification on the Net Revenue Requirement Deferral and Variance Mechanism, including administrative procedures, financial implications, reporting requirements, risk transfer, and cost containment strategies. IR-29 inquires about the tax treatment of monthly payments made by Nova Scotia Power on behalf of IESO Nova Scotia.
Request IR-30: Please explain how the Monthly Assessment amount of $950,000 was determined (given that even the recovery of that amount over 14 months is less than the proposed 2026/2027 revenue requirement) and the impact of accumulating...
AI summary The text requests an explanation of how the Monthly Assessment amount of $950,000 was determined, particularly in relation to the proposed 2026/2027 revenue requirement, and the potential impact of accumulating deferrals if a permanent fee and cost recovery mechanism is not approved by March 31, 2027.
Request IR-31: a) Given that none of the costs associated with the proposed Monthly Assessment would have flowed through Nova Scotia Power's Fuel Adjustment Mechanism, and would have been allocated to customers on a different basis than FA...
AI summary The document raises three questions regarding the use of the Fuel Adjustment Mechanism (FAM) for Monthly Assessment costs, the reconciliation of interim relief balance once a cost recovery mechanism is approved, and confirmation from IESO Nova Scotia about NS Power's intention not to recover costs until approval. It addresses concerns about cost allocation differences, impact on rate classes, and cost recovery procedures.
101002Rebuttal Submission from IESO-NS re: temporary financial relief
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4. Applicable Taxes The SBA and IG also note lack of clarity regarding IESO Nova Scotia's statement regarding the fees being "exclusive of applicable taxes". The SBA noted the following: …it is unclear from the information provided in the...
AI summary The SBA and IG highlight concerns over unclear tax implications in IESO Nova Scotia's fee structure, potentially affecting ratepayers. The Board's IR-30 requests clarification on why Nova Scotia Power's customers might face higher tax costs due to arrangements with IESO Nova Scotia. Key issues include tax transparency and financial impacts.
FUEL ADJUSTMENT MECHANISM In light of IESO Nova Scotia's immediate funding needs and the absence of available LOC or commercial financing, IESO Nova Scotia has proposed temporary financial relief in the form of monthly fees charged to NS P...
AI summary IESO Nova Scotia proposes temporary financial relief via monthly fees charged to NS Power, deferred within the FAM. Intervenors, including PHP, oppose using FAM to recover IESO costs, arguing it shifts non-profit IESO expenses to NS Power's for-profit operations. PHP urges IESO to file a permanent fee recovery mechanism without utility equity costs.
The CA provided the following: …the Consumer Advocate is concerned about the appropriateness of IESO NS receiving payment from NS Power through the FAM. While the FAM applies to many customer groups, including residential customers, it doe...
AI summary The Consumer Advocate is concerned that IESO NS receiving payments from NS Power via the FAM may lead to unfair cost distribution, as non-FAM customers' costs are effectively covered by FAM customers. If these costs are recovered through FAM, NS Power benefits from WACC application.
The IG provide, in part, the following: The FAM is a statutory and highly structured mechanism designed for the recovery of NSPI's fuel and purchased-power costs. It is established under s. 64AB of the Public Utilities Act and has only thr...
AI summary The Fuel Adjustment Mechanism (FAM) is a statutory mechanism for NSPI to recover fuel and power costs, with a deficit of $101.6 million as of 2025. Delays in resetting fuel costs and adding a Monthly Assessment increase the deficit, leading to higher customer bills due to financing costs.
by the SBA is section 30, which pertains to recovery of "costs for energy resource supply contracts", and does not pertain to the Application in this case. Page 10 of 13 February 19, 2026 Ms. Henwood IESO Nova Scotia takes these concerns s...
AI summary IESO Nova Scotia argues that using the FAM for interim cost deferral is necessary due to a revenue shortfall, despite diverging from FAM's usual purpose. NS Power confirms interim amounts are not in its rate application, and an alternative deferral mechanism would be needed if FAM is rejected. The SBA's section 30 does not apply to this case.
102939Closing Submission - CA - Redacted
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43 [27] The NSUARB summarized the application of these principles in Re Nova 44 Scotia Power Incorporated [2018 NSUARB 45]: 1 [47] The UARB is a creature of statute and can only obtain 2 jurisdiction from two sources: one, express grant of...
AI summary The NSUARB discusses its jurisdiction based on statutory grants and common law, referencing the ATCO Gas case and the Energy and Regulatory Boards Act. It highlights the ratemaking function for utilities, particularly in the context of natural monopolies, and refers to a 2005 decision regarding NSPI's monopoly status and cost-of-service basis.
1 2 3 [22] A widely-accepted publication written by Dr. James Bonbright entitled Principles of Public Utility Rates, sets out the following guidelines for determining appropriate rates: 4 5 CRITERIA OF A SOUND RATE STRUCTURE 6 7 1. The rel...
AI summary The document references Dr. James Bonbright's 'Principles of Public Utility Rates,' outlining eight criteria for a sound rate structure, including simplicity, revenue stability, fairness, and efficiency. These principles are established and form the background for assessing the current application, citing a 2002 NSUARB decision.
15 6) Approval of Net Revenue Requirement Deferral and Variance Mechanism 16 17 Through this Application, IESO NS requests approval to maintain its Net OM&A Deferral and 18 Variance Account, which would be more appropriately renamed as the...
AI summary IESO NS requests approval to rename and continue using the Net Revenue Requirement Deferral and Variance Mechanism. Concerns have been raised about the risk of imprudence and who would bear the associated costs, with the CA emphasizing that customers, not IESO NS, would ultimately bear these costs due to its non-profit status.
102945Closing Submission - IG
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1. THE PROPOSED DEFERRAL AND VARIANCE ACCOUNT – OPPOSITION TO EXPANSION The Industrial Group opposes the proposed expansion of the Deferral Account and respectfully submits that the Board should not approve either the proposed permanent st...
AI summary The Industrial Group opposes the expansion of the Deferral and Variance Account, arguing that the Board should not approve its permanent status or expanded scope at this time. They suggest that if a deferral is approved for 2026/2027, it should be limited and interim with strong protections for ratepayers. The Board previously required specific guidelines and accounting policies before allowing recovery of costs from the account, which IESO-NS has not yet finalized.
a. No expansion for Capital Costs IESO-NS seeks approval to expand its proposed Deferral Account to include capital cost variances. However, IESO-NS has not sought Board approval of any specific capital costs in either its 2025/2026 or 202...
AI summary IESO-NS seeks to expand its Deferral Account to include capital cost variances, but has not yet sought Board approval for specific capital costs in its revenue requirement applications. The Industrial Group and DGT argue that including capital costs in the Deferral Account is premature and inconsistent with Good Utility Practice without proper governance, accounting policies, and Board approval.
b. Unforeseen Costs Should Require a Board Application As proposed, the Deferral Account would effectively permit IESO-NS to incur costs, identify variances after the fact and recover those amounts from ratepayers in a subsequent period wi...
AI summary The Industrial Group argues that the Deferral Account should not be used to recover significant unforeseen costs without prior Board approval, as this would shift financial risk to ratepayers and bypass regulatory oversight. They propose that IESO-NS should apply to the Board for approval of such costs, ensuring transparency and accountability.
b. Labour and Compensation Costs The single largest driver of the RR is employee compensation. The total revenue requirement includes an "Employees (administration)" component of $4.44M and an "Operations (system planning)" component of $3...
AI summary Employee compensation is the largest driver of the revenue requirement, with specific components for administration and system planning. The Industrial Group argues that the budget is overstated due to the lack of vacancy rate adjustment, insufficient independent support for salary benchmarking, and unassessed executive compensation.
king Responses, U-1, page 1. [ 31 ](#page-8-3) N-18, Undertaking Responses, U-1, page 2. [ 32 ](#page-8-5) N-18 Undertaking Responses, U-1, Attachment 2. [ 33 ](#page-8-7) N-18 Undertaking Responses, U-5, Attachment 1. [ 34 ](#page-8-9) N-...
AI summary The document discusses concerns raised by the Industrial Group regarding the CEO objectives outlined in Undertaking U-8, noting that they lack measurable targets for transition tasks, affordability measures, and cost-effectiveness of energy resources, and appear more focused on internal management than ratepayer interests.
- Prudency Review Framework – Shifting Position: IESO-NS's position on how the prudency review of the Deferral Account will operate has been a moving target. On June 17, when first questioned by the Industrial Group, Mr. Johnston initially...
AI summary The prudency review framework for the Deferral Account has been inconsistent, with IESO-NS changing its position on how variances would be tracked. There is also a lack of clarity on how the Deferral Account mechanics operate, including how balances would be tracked and managed.
CONCLUSION In reliance on the above submissions, the Industrial Group requests that the Board: - 1. decline to make the Deferral Account Mechanism permanent, and decline to expand its scope to include capital cost variances or catch-all un...
AI summary The Industrial Group requests the Board to not make the Deferral Account Mechanism permanent or expand its scope, and if approved for 2026/2027, to implement it on a limited, interim, and conditional basis with specific governance requirements.
102946Closing Submission - IESO
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10 M12633 Transcript, June 25, 2026, page 58. 196 Q. Okay. And so given that the roles haven't been filled and we're still looking at, you 197 know, mid-August to mid-September and potentially longer, we don't know, I guess 198 what is IES...
AI summary The IESO discusses projected costs related to unfilled roles and the impact on revenue requirement calculations. They explain that while there are delays in hiring, the overall cost remains similar due to offsetting variances in consulting expenses. The IESO did not include a vacancy adjustment in their labour expenses due to uncertainty in timing.
26 DGT response to IG IR-5, M12663, May 12, 2026. 572 presentation as provided in the Application. DGT found in its report in this proceeding that "The 573 modified calculation of the Deferral Mechanism fosters simplicity for tracking purp...
AI summary DGT discusses the modified calculation of the Deferral Mechanism and its alignment with the NSEB's Decision under M12412, including the +/- 10% variance threshold for OM&A Deferral and Variance Account. IESO Nova Scotia clarifies that the new DVM aligns with the Board's guidance and that prudency review thresholds would naturally extend to the DVM.
27 DGT Report, Review of Revenue Requirement Application by the Nova Scotia Independent Energy System Operator (M12663), March 31, 2026, page 6. 596 direction to the new DVM, along with any other new direction, is ultimately at the discret...
AI summary The document discusses the treatment of capital costs within the Net Revenue Requirement Deferral and Variance Mechanism (DVM) as proposed by the Independent Energy System Operator of Nova Scotia (IESO Nova Scotia). The DVM is intended to account for variances from the approved revenue requirement, including capital costs and energy resource procurements. The Nova Scotia Energy Board (NSEB) has discretion over the direction of the DVM.
33 M12633 Transcript, June 25, 2026, pages 483 - 484. 682 stakeholders regarding IESO Nova Scotia's full expected expenditures, inclusive of both OM&A 683 and capital. 684 685 Recovery of All Costs Incurred 686 A fundamental purpose of the...
AI summary The transcript discusses the DVM and its purpose in recovering all costs incurred by IESO Nova Scotia, a not-for-profit organization established under the MAEA. The Board Chair McGrath questions the justification for the deferral account, emphasizing that it should be used for costs outside the entity's control, not for not-for-profit organizations to pass through all costs to customers.
35 M12633 Transcript, June 17, 2026, pages 254-255. - 734 This, however, does not give IESO Nova Scotia license to automatically pass through costs for - 735 recovery via the DVM. Mr. Johnston provided clarity on this as well in the follow...
AI summary The testimony discusses the IESO Nova Scotia's position on cost recovery through the DVM, emphasizing the need for prudence in planning and the necessity of seeking Board approval before passing through unforeseen costs to customers.
784 785 Notwithstanding the procedural review protections in place as described above, IESO Nova Scotia 786 acknowledges that more work is to be done regarding documenting controls in place to limit 787 potential variations in spend and th...
AI summary IESO Nova Scotia acknowledges the need for improved documentation of controls to limit spending variations and reduce risk for the DVM. They are compiling guidelines for the DVM in compliance with Board direction from M12412, and intend to include cost control measures in their '27/'28 Application.
38 M12633 Transcript, June 25, 2026, page 507-508. 799 867 accounting policies must be developed and approved before there is a recovery of Net 868 Ongoing OM&A amounts from the Deferral and Variance Account. Further, the 869 guidelines sh...
AI summary The document discusses the requirement for accounting policies to be developed and approved before recovering ongoing OM&A amounts from the Deferral and Variance Account. It also states that variances exceeding +/-10% will trigger a review process. IESO Nova Scotia interprets the Board's direction in M12412 to automatically trigger a review when a cost category exceeds the approved revenue requirement by +/-10%.
1102 1103 Further, the potential for outright denial or disallowance of costs has the potential to interfere with 1150 Recommendations 1151 1152 Under s. 25(4) of the Electricity Act, 1998, "The Board may approve the proposed 1153 expendit...
AI summary The OEB has approved the IESO's revenue requirements but disallowed the proposed single usage fee, referring the matter back to the IESO for further consideration. The OEB recommends splitting the usage fee into two separate fees for domestic and export customers, each based on a 100% revenue-to-cost ratio.
1307 For the reasons set out in this Closing Submission, IESO Nova Scotia respectfully submits that the 1308 evidentiary record supports approval of its 2026/27 Revenue Requirement Application in its 1309 entirety. No intervenor evidence h...
AI summary IESO Nova Scotia submits that its 2026/27 Revenue Requirement Application is supported by the evidentiary record and that no intervenor evidence challenges the prudence or reasonableness of the proposed expenditures. The proposed revenue requirement is deemed necessary to fulfill its statutory mandate under the More Access to Energy Act, and the DVM is presented as a reasonable evolution of the OM&A Deferral and Variance Account.
102947Closing Submission - PHP
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July 24, 2026 James A. MacDuff Direct +1 (902) 444 8619 [email protected] Purdy's Wharf Tower II 1300-1969 Upper Water Street PO Box 730 Halifax NS Canada B3J 2V1 Tel +1 (902) 425 6500 Fax +1 (902) 425 6350 Ms. Crystal Henwoo...
AI summary PHP submits closing remarks on the IESO's 2026/27 Revenue Requirement and Fees Application, focusing on the Net Revenue Requirement Variance and Deferral Mechanism, recovery of capital and energy resource supply contract costs, and the IESO's not-for-profit status. The submission highlights goforward issues and clarifies that PHP's non-mention of certain issues does not imply agreement with IESO's position.
O's status as a not-for-profit entity. PHP's failure to address any particular issue in this matter should not be interpreted as PHP's acceptance of, or agreement with, IESO's position on such issues. At page 37 of its Application, line 8,...
AI summary The IESO is requesting approval for a Deferral Account in perpetuity, initially including OM&A cost variances from revenue applications and potentially future capital costs. The IESO Panel clarified that the account is intended to address expenses incurred by the not-for-profit organization, regardless of whether they are included in a Revenue Requirement Application.
that as a not-for-profit organization, if there are any expenses that we end up having to take, then there has to be a way for those expenses to be addressed one way or the other. So yes. 1 There was also discussion during the hearing abou...
AI summary The discussion centers on cost recovery mechanisms under Section 30 of the More Access to Energy Act , with the IESO Panel acknowledging a lack of internal policy for tracking these costs. There is also mention of the Deferral Account and cost control measures, with some concern about the timing and implementation of forecasting and tracking processes.
esses as part of the Deferral Account, Mr. Johnston noted that "we very much see that as an end-of-year, one-time drop activity, not something that's happening day to day or week to week." 5 Given the lack of clarity regarding (i) the pote...
AI summary PHP expresses concerns about the proposed Deferral Account, citing a lack of clarity on cost inclusion, recovery methods, and ongoing cost control. They argue it is premature to approve the account 'in perpetuity' due to the IESO's not-for-profit status and the risk of ratepayers bearing imprudent costs.
rgy Act. In light of the not-for-profit status of the IESO, it is all the more critical for the Board to proactively mitigate the risk that the IESO costs could subsequently be found to be imprudent. Accordingly, prior to approving any Def...
AI summary PHP suggests that the Board should require the IESO to provide detailed documentation before approving a Deferral Account 'in perpetuity', ensuring clarity on eligible costs and cost control measures. This is due to the IESO's not-for-profit status and the need to mitigate the risk of imprudent costs.
d="page-1-10"> & lt;sup>6 Transcript, page 515, lines 5-8. & lt;sup>7 Transcript, pages 459-466. MCINNES COOPER Page 3 July 24, 2026 by the IESO if it becomes aware of the potential for material cost increases. This should include the adop...
AI summary The IESO is recommended to adopt an approval to overspend (ATO) process and guidelines for reviewing significant projects to ensure proper cost monitoring and stakeholder input, preventing imprudent costs from being passed to ratepayers. The submission was made by James MacDuff.
103127Reply Submission - IESO
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1 2 NET REVENUE REQUIREMENT DEFERRAL AND VARIANCE MECHANISM 2 Intervenor submissions provided comments and recommendations on IESO Nova Scotia's DVM. 3 Intervenor submissions include recommendations regarding interim approval only subject...
AI summary Intervenors recommend interim approval of the Net Revenue Requirement Deferral and Variance Mechanism (DVM) with safeguards, including a 10% variance cap and administrative framework requirements. The IESO supports full or interim approval of the DVM, noting that many issues raised by intervenors are addressed by the NSEB's direction in its Decision under M12412.
DATE FILED: AUGUST 7, 2026 Page 10 of 48 1 Intervenors also recommended the Board direct pre-approval of IESO Nova Scotia unforeseen 2 costs as they may arise throughout the fiscal year. The IG recommended the NSEB "require IESO-3 NS to ap...
AI summary Intervenors recommend pre-approval of unforeseen costs by IESO Nova Scotia, with the IG, CA, and PHP suggesting various oversight mechanisms. IESO Nova Scotia assesses the risk of large variances or new expenditures as low, citing budgeted amounts and existing mandates under the MAEA.
1 Benchmarking - 2 Another focus of intervenors with respect to staffing and compensation is related to the general - 3 reasonableness of compensation based on the associated benchmarking information used to inform - 4 the Application. 5 6...
AI summary The text discusses concerns raised by intervenors about the reasonableness of compensation based on benchmarking information. It highlights issues with the benchmarking approach used by HUB, including the inflation of the comparator group and the lack of actual benchmarking data. Additionally, it notes an underspend in administration salaries and questions the reasonableness of the proposed labour and salary budget.
1 early stage, vacancies and external support costs must be understood together, as IESO Nova 2 Scotia requires flexibility to carry out its mandate while continuing to recruit and work toward 3 steady-state operations. 4 5 IESO Nova Scoti...
AI summary IESO Nova Scotia emphasizes the need for flexibility in its operations and the proper inclusion of procurement-related costs in the Application. It also supports the approval of the DVM as an extension of the Net OM&A Deferral and Variance Account, aligning with prior Board direction in M12412.
103134Reply Submission - IG
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T HE S TATUTORY T EXT A ND T HE C OMPETING P OSITIONS Subsection 29(4) of the MAEA provides: The Energy Board may approve the proposed expenditure and revenue requirements and the proposed fees or may refer them back to the IESO for furthe...
AI summary The text discusses the interpretation of Subsection 29(4) of the More Access to Energy Act (MAEA), focusing on the Energy Board's authority to approve or refer back revenue requirements. IESO-NS argues the Board can only approve or refer back as a whole or by category, while the CA and IG argue the Board has broader discretion to adjust revenue requirements as needed, consistent with its general regulatory powers under the ERBA.
R ETROACTIVE I MPRUDENCE R EVIEWS A RE D IFFERENT IESO-NS has asked the Board to rule on the full scope of its jurisdiction under s. 29(4), including its ability to make prudence findings or order disallowances because of the implications...
AI summary The IESO-NS is seeking clarification on the Board's jurisdiction under s. 29(4) to conduct prudence reviews and order disallowances. The IG argues that the Board must distinguish between prospective revenue requirement setting and retrospective imprudence reviews, citing the deferral and variance mechanism and Board decision M12412.
3. The variance threshold assumes an approved baseline and enforceable conditions IESO-NS's current interpretation also does not align with the way the Board and IESO-NS have already treated the interim deferral and variance mechanism. In...
AI summary The document discusses the variance threshold mechanism approved by the Board in M12412, emphasizing that it requires an approved baseline and enforceable conditions. It argues that the IESO-NS's current interpretation is inconsistent with the framework established in that proceeding, which allowed for a +/-10% variance threshold and binding conditions.
e by IESO-NS under a 10-year contract with NB Power. If the judicial review succeeds and a new hearing is ordered, the status of that contract and IESO-NS's obligations under it will become uncertain. - 3. The NB Auditor General's findings...
AI summary The Industrial Group (IG) raises concerns about IESO-NS's procurement practices and governance in the RIGS project, highlighting risks to ratepayers and the need for pre-approval mechanisms. It also calls for IESO-NS to report on the judicial review outcome as part of its quarterly reporting obligations.
20260617-1Hearing Transcript — 06/17/2026 (Johnny Johnston, Chris Milligan, Mike McFeters)
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LIST OF UNDERTAKINGS NO. PAGE NO. 7 maintenance, and administrative costs budget for fiscal 8 year 2026/2027 in the amount of 13.08 million, as well as 9 transitional and operational planning costs in the amount 10 of 1.77 million, for a t...
AI summary IESO Nova Scotia requested a temporary financial relief of $950,000 per month from Nova Scotia Power due to the absence of a permanent fee and cost recovery mechanism. The Board previously approved the request but noted that IESO Nova Scotia's situation was self-caused, as it delayed developing a rate recovery mechanism, leading to near insolvency.
OPENING STATEMENT 27 IESO NOVA SCOTIA 1 In these roles, I've testified in 1 The requested revenue requirement is designed to ensure 2 that we can maintain and enhance system reliability; 3 advance the transition to a cleaner electricity sy...
AI summary The opening statement from IESO Nova Scotia outlines the organization's commitment to maintaining system reliability, advancing the transition to a cleaner electricity system, and ensuring reasonable costs for all Nova Scotians. The statement emphasizes the importance of customer needs and the legislative mandate of IESO Nova Scotia.
new evidence to acknowledge an issue and try to correct it. And I think in this particular case, what we have is IESO Nova Scotia effectively acknowledging that this Application is based upon the prior Application, which was, you know, wit...
AI summary The discussion centers on the accuracy of forecasts in a regulatory proceeding, with concerns raised about potential inaccuracies in prior applications. The Chair acknowledges the possibility of changes in forecasts and highlights the importance of avoiding single-issue ratemaking, ensuring the Board considers broader implications.
1 that, and under the normal course, in terms of how we put 2 forward the deferral account would work, we're always 3 going to come back a year later, in the next application, 4 to do that true-up. 5 THE CHAIR: No, I understand, but in 6 t...
AI summary The discussion revolves around the deferral account and the distinction between uncollected but approved revenue requirements and the deferral account. It emphasizes that the deferral account captures variances between approved revenue requirements and actuals, while uncollected revenue still needs to be collected.
IESO NOVA SCOTIA PANEL 199 Cr-ex, (MacAdam) 1 call it the deferral account, the prudency review for the 2 2025/2026 spend, do you anticipate that will be as part of 3 the permanent fee and Cost Recovery Application or 4 okay, so it will be...
AI summary This excerpt from a regulatory proceeding discusses the deferral account and prudency review for the 2025/2026 spend, including how a provincial grant surplus will be offset against OM&A costs. The speaker confirms that the surplus has been accounted for in the estimated spending for 2025/2026.
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 Deferral and Variance Account; correct? 2 A. (Johnston) So yes, one was 3 approved in '25/'26 Application. I think part of the 4 discussion here is being is really a process that wou...
AI summary The discussion revolves around the Deferral and Variance Account, which is approved but not yet implemented. The account will be used after the final audited statements are available, indicating a post-hoc application rather than real-time use.
IESO NOVA SCOTIA PANEL 249 Cr-ex, (Rudderham) 1 THE CHAIR: So, Mr. Furey, we have 16 that we've got in place is our accounting policies, and 17 obviously subject to them being in draft, I think the 18 piece that is outstanding is then real...
AI summary The discussion revolves around the accounting policies and the deferral account mechanisms being considered by IESO NS. There is a focus on whether a hard cap should be imposed on the proposed variance account, with concerns about uncertainty in the early years of implementation and unforeseen events that may impact financial reporting.
some sort of variance, and therefore putting in the mechanism that's going to work on an enduring basis is probably efficient for all people, versus trying to renegotiate a different mechanism every year. Q. Maybe not every year, but do yo...
AI summary The discussion centers on the need for a permanent mechanism for deferral accounts, with the IESO supporting a long-term solution. There is also a focus on the prudence review process and how costs in the deferral account will be reviewed annually as part of the revenue requirement process.
IESO NOVA SCOTIA PANEL 293 Cr-ex, (Rudderham) 1 included. So that is not the implementation cost. 2 No, but I'm asking you, the cost Q. 3 here, from what you've learned from IBM or what you've 4 been working on, does IESO anticipate the co...
AI summary The discussion centers on whether the IESO Nova Scotia anticipates changes in implementation costs by plus or minus 10 percent, and how such changes would be reported or addressed. The IESO indicates that approval from the Board is required before any clear view of cost changes can be determined, and that material changes would be noted in quarterly reports.
20260625-1Hearing Transcript — 06/25/2026 (Johnny Johnston, Chris Milligan, Mike McFeters, Angie Brown)
12 passages
IESO NOVA SCOTIA PANEL 363 Cr-ex, (Rudderham) 1 PDF page 21. 14 A. (Milligan) Thanks, Ms. Rudderham. 15 Yes, we were just looking to do that 16 math as well. So it's not inclusive of that New Brunswick 17 portion. 18 And that's only to be...
AI summary The discussion revolves around the reimbursement of costs related to a request for proposals (RFP) and subsequent procurement. If the RFP is unsuccessful, the cost would be a direct expense not included in the revenue requirement and would be recovered from ratepayers. If successful, the cost would be reimbursed and flow through a deferral account.
IESO NOVA SCOTIA PANEL 395 Cr-ex, (Rudderham) 1 discussed that any of those would be recovered by IESO 2 BY MS. RUDDERHAM: 3 Q. Okay. I want to skip topics to 4 follow up on the interim financial relief that was 5 included under this Appli...
AI summary The document discusses the interim financial relief approved by the Board for the IESO, requiring NS Power to provide a monthly amount to be accrued in a separate deferral account from the FAM with interest. The allocation and recovery of this balance from customers has not yet been determined.
IESO NOVA SCOTIA PANEL 407 Cr-ex, (Rudderham) 1 Q. What I'm wondering, is that 6 that's for your lawyer to indicate whether there's an 7 objection or not. 8 THE CHAIR: Mr. Furey? 9 MR. FUREY: I object. 10 I'm assuming on relevance. THE CHA...
AI summary The discussion revolves around the relevance of historical data on bonuses and incentives in the context of the 2025/2026 revenue requirement and deferral account. Ms. Rudderham argues that this information is relevant for understanding how these expenses impact ratepayers, while Mr. Furey objects, suggesting it may only become relevant in future prudence reviews.
IESO NOVA SCOTIA PANEL 459 Cr-ex, (Kayter) 1 of, you know, the possibilities here?" 2 THE CHAIR: So Mr. Kayter, there's two 3 things going on in this Application. One is the approval 4 of the revenue requirement, which the legislation 5 ab...
AI summary The discussion centers on the approval of a revenue requirement and the establishment of a deferral and variance account under the More Access to Energy Act. The Chair questions whether the Province supports the use of such an account and whether costs can be disallowed if not appropriately included.
IESO NOVA SCOTIA PANEL 463 Cr-ex, (Kayter) 1 behalf of the Department at this time, but it's a fair 2 question the Board asks, and it flows from the line of 3 questioning that I'm raising, and I didn't contemplate it 4 when I was framing t...
AI summary The discussion centers on the Board's authority to deny proposed expenditures and revenue requirements, referencing the deferral account and variance piece. The speaker mentions legislation that refers matters back to IESO Nova Scotia on a forecasted basis and anticipates eventual Board approval.
1 of those policies and guidelines, the IESO would comply 2 with whatever direction is provided in that regard? 3 A. (Johnston) As with everything, we 4 will do what we can to follow the Board's guidelines. 5 MR. MAHODY: Mr. Norwood, could...
AI summary The IESO Nova Scotia is requesting the continuation of the Net OM&A Deferral and Variance Account for 2026/2027 and in perpetuity to track and defer variances from the approved revenue requirement, including additional cost categories such as capital costs and energy resource procurements.
IESO NOVA SCOTIA PANEL 487 Questions, (Chair) 1 A. (Johnston) That is correct. 2 Yeah. Apologies. I mean, that was definitely not clear 3 in our Application and we acknowledge that. 4 And so in Doane Grant Thornton's Q. 5 report when they...
AI summary The discussion addresses the deferral account and its accounting treatment under IFRS. The account is not currently recognized on financial statements but may be in the future under a new regulatory asset and liability standard. The entity acknowledges shortcomings in its initial application and confirms the intent to defer capital costs.
whichever way I feel like, what 16 we've got today is not the most rational and we're 17 certainly happy to look at it that way, if that'd be 18 helpful. 19 Q. Right. And not to introduce more INTERNATIONAL REPORTING INC. CERTIFIED COURT R...
AI summary The discussion revolves around cost recovery mechanisms for IESO Nova Scotia, including section 29, section 30, and the transmission tariff under section 79. There is a consideration of allocating labour costs across various categories and how they may be treated under different revenue requirement or cost recovery mechanisms.
IESO NOVA SCOTIA PANEL 503 Questions, (Chair) 1 that would be impactful and that are outside of the 2 control of the entity that's requesting the deferral 3 account. And my sense is that the justification for the 4 deferral account in this...
AI summary The discussion revolves around the justification for a deferral account, particularly for a not-for-profit organization, and the need for internal controls and mechanisms to ensure cost control and accountability. Concerns are raised about potential disincentives for cost management if all costs are flowed through without risk to the organization.
IESO NOVA SCOTIA PANEL 509 Questions, (Chair) 1 (SHORT PAUSE) 2 MR. JOHNSTON: I'm always nervous when 3 I commit to providing more information to the Board, 4 because you can imagine there's a whole incremental set of 5 work that is that g...
AI summary The discussion centers on the potential for providing more detailed financial reporting to the Board, including monthly filings for the Fuel Adjustment Mechanism. The speaker highlights challenges related to organizational size and resource constraints, suggesting a preference for quarterly reporting. There is also a mention of the need for stringent forecasting and tracking processes for the deferral and variance account.
BROWN In-ch, (Mahody) 1 Q. So for costs, particularly of any 5 Q. And are the facts on which your 6 opinion is based true and accurate, to the best of your 7 information and belief? 8 Yes, they are. A. 9 And are the opinions that you've Q....
AI summary The text discusses a regulatory proceeding involving a witness, Ms. Brown, who is being cross-examined. The discussion centers around the deferral and variance account, capital spend, and clarification provided by the panel. Ms. Brown confirms that there are no material changes to her positions or evidence.
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS included in the guidelines, but can the Application that's been put forward with respect to the depreciation of capital be approved prior to this information being provided, or would y...
AI summary The discussion centers on whether the Board can approve the Application regarding the depreciation of capital before specific information is provided. The response suggests that the information can be filed by the end of 2026 and that current capital assets are minor, such as office equipment and website development.